Too many condos, not enough homes in Toronto market

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Toronto condo prices are expected to fall this year and next, which could deter some move-up buyers from making the leap to increasingly scarce single-family homes, according to a new report from economists at Toronto-Dominion Bank.

A flood of new condos coming on the market — an estimated 70,000 units in high-rise buildings will be completed in the next two years — will have trouble competing with previously constructed condos, which are often larger and cheaper, the report said.

“Meanwhile, the market for single-detached homes remains drum tight, keeping average resale home price growth in the [Greater Toronto market] near 9 percent year over year in February, further igniting fears of a bubble,” the report said. “One market is facing too much supply, while another appears to be heating up.” Source: theglobeandmail.com.